The initial public offer (IPO) of Infinite Computer Solutions (India) was fully subscribed on the second day on Tuesday, 12 January 2010. The IPO got bids for 2.78 crore shares by 16:00 IST, data on NSE showed. The company proposes to sell 97.77 lakh shares through the IPO, which excludes allotment to anchor investors.

The issue closes on 13 January 2010. The price band has been set at Rs 155 to Rs 165. At the top end of the price band, the company will raise about Rs 190 crore. The company is offering shares through a 100% book-building process.

Infinite Computer Solutions got a commitment of Rs 28.46 crore from nine anchor investors. The company finalised an allocation of 17.25 lakh shares to nine anchor investors at Rs 165 per share--at the upper price band of the IPO.

The IPO includes fresh issue of 57.33 lakh equity shares and an offer to sell 57.69 lakh equity shares by Whiterock Investments (Mauritius). The company intends to utilize the IPO proceeds for meeting capital expenditure, making acquisitions and repaying debt.

Infinite Computer Solutions (India) is mainly into software application development and maintenance but has diversified into other areas such as remote infrastructure management and research & development services.

Indian equities ended the day on a weak note. The 30-share index which began the day on a flat note turned volatile in early trades. The Nov` 09 IIP numbers which stood at 11.70% v/s 2.5% (Y-o-Y) basis did bring in a breather for the markets but the same was short lived

BSE Midcap and Smallcap indices too failed to maintain their upward trend and ended lower by 1.14% each. BSE IT index which cheered the Q3FY`10 result was the major support provider to the market.

Broader markets performed on mixed note. Asian stocks ended mixed, as Chinese auto sales and better-than-estimated profit at Infosys Technologies fueled optimism that regional growth will outpace the rest of the world.

Japanese benchmark index Nikkei 225 rose 80.82 points, or 0.75%, to end at 10,879.14. Hong Kong`s Hang Seng decreased 84.88 points, or 0.38%, to end at 22,326.64.

European stocks which opened positive traded on a weak note. UK`s benchmark index FTSE 100 shed 18.23 points, or 0.34%, to trade at 5,518.67.

The Sensex ended the day with a loss of 104.20 points, or 0.59% at 17,422.51 after touching a high of 17,612.00 and a low of 17,392.55. The broad-based NSE Nifty fell 39.00 points, or 0.74% at 5,210.40 after hitting a high of 5,300.50 and a low of 5,200.95.

On the other hand, DLF (3.86%), Reliance Communications (3.49%), Tata Steel (3.42%), Sterlite Industries (India) (3.18%), ICICI Bank (3.08%), and State Bank Of India(2.84%) were the major losers in the Sensex.

Overall market breadth was positive. Out of the total 2991 shares traded at BSE, 1,077 advanced, 1,850 declined while 64 remained unchanged.

US stock futures opened lower on Tuesday, as investors look forward to data related to trade balance for November.

Indian indices

Domestic markets declined for the fourth straight session brushing aside better-than-expected Q3 earnings for Infosys Technologies (infy) that sets the tone of IT companies’ earnings and strong index of industrial production (IIP) numbers for November. The Sensex opened mere 8 points higher and soon turned negative. The day’s high was 17612 while the low for the day was 17392. At closing bell, the index was at 17527, 104 points down. Nifty closed 39 points lower at 5210.

Market sentiment

The market breadth, the number of advancing shares to declining shares, was negative. Of the total 2,991 stocks traded on the BSE, 1,850 stocks declined, whereas 1,037 stocks advanced. Sixty four stocks closed unchanged.

Sectoral & stock screening

Infy’s Q3 readings set the tone for IT stocks with the BSE IT up by 3.91%. The other two sectors that were up for the day were BSE Teck and BSE Auto. The remaining 10 sectors were down, with the realty sector (BSE Realty) down by 3.10%, the most for any sector, to be followed by BSE Metal that fell by 2.30%.

On stocks’ front, Thermax surged the most by 7.10% followed by Jai Corp that rose 6.33% and Wipro that jumped 4.89%. Among losers, Adani Enterprises slid the most by 6.35% followed by REI Agro that fell 5.47%.

Nifty January 2010 futures were at 5,208.60, at a discount of 1.80 points as compared to the spot closing of 5,210.40. Turnover in NSE's futures & options (F&O) segment surged to Rs 69,334.16 crore from Rs 46,016.12 crore on Monday, 11 January 2010.

Tata Steel January 2010 futures were at premium at 626.25 compared to the spot closing of 625.

State Bank of India January 2010 futures were at a slight premium at 2,200 compared to the spot closing of 2,198.70.

Infosys Technologies January 2010 futures were at a slight discount at 2,578.90 compared to the spot closing of 2,581.50.

In the cash market, the S&P CNX Nifty lost 39 points or 0.74% at 5,210.40.

Stock markets in Asian region tanked on Tuesday, 12 January 2010, led by banks and mining companies, after China allowed the benchmark money-market rate to increase. China's central bank on Tuesday sold one-year bills at a higher yield for the first time since August 2009, fanning concern the government is moving to tighten liquidity.

The People's Bank of China on Tuesday raised the auction yield on one-year bills by a bigger-than-expected 8.29 basis points and drained a record 200 billion yuan ($29 billion) from the market, signaling a bias to tighten monetary conditions. Last week, the bank had surprised markets by raising the interest rate on three-month bills for the first time since August 2009, raising fears of a tightening cycle to head off economic overheating.

On Wall Street, the Dow closed higher Monday but the Nasdaq sagged, as investors awaited the kickoff to earnings season with Alcoa's report after the bell. The Dow Jones Industrial Average added 46 points, or 0.4%, at 10,664. The S&P 500 improved by 2 points, or 0.2%, at 1147, but the Nasdaq closed lower by 5 points, or 0.2%, to 2312.

In the commodity market, crude oil dropped for a second day in New York on forecasts cold weather in the eastern U.S. will abate this week, curbing heating fuel demand in the world's biggest energy user.

Crude oil for February delivery fell as much as 93 cents, or 1.1%, to $81.59 a barrel in electronic trading on the New York Mercantile Exchange, the biggest intraday drop since 21 December 2009. The contract was at $82.23 a barrel at 4:05 p.m. Singapore time.

Brent crude oil for February settlement dropped as much as 89 cents, or 1.1%, to $80.08 a barrel on the London-based ICE Futures Europe exchange. The contract, declining for a fourth day, was at $80.67 a barrel at 4:06 p.m. Singapore time.

Gold, trading little changed in Asia, may reach its highest level in more than a month on speculation the dollar will continue to weaken, fueling demand for the precious metal. Gold for immediate delivery fluctuated between gains of 0.2 percent and losses of 0.3%. It last traded up 0.2%t at $1,154.21 an ounce at 2:22 p.m. in Singapore. The metal touched an all-time high of $1,226.56 on 3 December 2009. Gold for February delivery in New York was up 0.3% at $1,154.30.

In the currency market, US dollar recovers across the board as China raised bill yields second time in a week to tightening liquidity further. Crude oil retreats yesterday's gain and is back at 82 levels while gold is also back pressing 1150. PBoC sold benchmark 1-year bill at 1.8434$ today. Last week, People's Bank of China raised yield on three-month bills to 1.3684%. The steps are viewed as sign that People's Bank of China is getting more aggressive in draining cash from the money market and prompts speculations there will more measures to come, including increasing banks' reserve ratios.

The Japanese yen advanced against euro and other major currencies in Asian trade on Tuesday on speculation local exporters were bringing home earnings from overseas after the three-day holiday, but yen pared early advances against greenback.

Japan's currency was quoted at 92.21 per US dollar on Tuesday from yesterday quote at Y92.09 per dollar in New York. The yen advanced to 133.31 against the euro from yesterday closing quote of 133.64.

The Hong Kong dollar was trading at HK$ 7.7552 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar closed lower on Tuesday as softer-than-expected home loans data weakened the currency. At the local close, the dollar was trading at $US0.9289, down 0.3 per cent from Monday's close of $US0.9312.

In Wellington trade, the New Zealand dollar came under pressure in its domestic session after reaching a near eight week high on Monday night. The NZ dollar was at US73.99c at 5pm, down from US74.28c at 8am and US74.02c at 5pm yesterday. It had risen to around US74.37c on Monday night, the strongest since November 19.

The South Korean won closed at 1,123.60 won to the greenback, down from yesterday 1119.80 won.

The Taiwan dollar strengthened further against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 31.7720, 0.0080 up from Monday's close of NT$31.7800.

In equities, Asian markets ended on a mixed note, with Alcoa's disappointing earnings weighing on the region's materials shares, while hopes for strengthening economic recovery fueled gains for shipping stocks in China.

In Japan, the share market hit new 15-month high at the end of Tuesday session, as gains in materials and resources, commodity trading firm, and machinery companies in afternoon trading as optimism about the global recovery bolstered by upbeat Chinese trade data, which overshadowed sour mood from tumbling Japan Airlines on delisting fears and profit taking in overheated stocks.

At the closing bell, the Nikkei 225 Stock Average index was at 10,879.14, gained 80.82 points or 0.75%, while the broader Topix of all First Section issues on the Tokyo Stock Exchange added 12.84 points, or 1.36%, to 954.13.

On the economy front, the Bank of Japan said that Japanese bank lending, excluding loans by credit associations, fell 1.2% last month from a year earlier, compared with a 0.1% rise in November. Ministry of Finance said today that Japan current account surplus grew 76.9% to 1.1 trillion yen ($11.9 billion) in November from a year earlier as a rebound in global demand bolstered exports.

In Mainland China, the stock market soared on Tuesday trading session, as strong gains in telecom stocks on expectation for sharp increase in 3G users this year and large-caps including banks, real estate developers on bargain hunting as optimism about the global recovery bolstered by upbeat Chinese trade data.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, rose 1.91%, to 3,273.97, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange added 1.67% to 13,381.25. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, surged 1.52%, to 3,534.92.

In Hong Kong, the share market tumbled on Tuesday, as a weak lead from offshore market and profit taking combined to snap a two-day rally. Banks and financials weighed the most amid worries over China monetary tightening after China allowed the benchmark money-market rate to increase, while resources shares lost steam with steep losses in Chalco after its global peer Alcoa's profits missed analyst estimates.

At the end of today's trading, the Hang Seng Index tumbled 84.88 points, or 0.38%, to 22,326.64, while the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, dropped 151.66 points, or 1.16%, to 12,967.37.

In Australia, the shares market snapped two days of winning streak, with benchmark All Ordinaries tumbled on Tuesday as a weak offshore cues and profit-taking. Most sectors fell below the line as investors looked to lock in profits made recently. Mining and banking stocks led the declines and the retailers share also under a cloud today.

At the closing bell, the benchmark S&P/ASX200 index tumbled 51.2 points, or 1.03%, to 4,899.50, meanwhile the broader All Ordinaries retracted 49.6 points, or 1%, to 4,931.60.

On the economic front, the Australian Bureau of Statistics reported today that Australia dwelling commitments was down a seasonally adjusted 5.6% month-on-month in November to 59,516, following the 1.9% fall in the previous month. The total number of home loans in Australia was down a seasonally adjusted 2.9% month-on-month in November to A$16.54 million, following the 1.6% fall in the previous month.

In New Zealand, benchmark index that increased consistently throughout the first week of year 2010 failed to hold on to its gains. The domestic share market lost the initial momentum to drop down for the second consecutive session in a row on Tuesday. Benchmark NZX50 that lost almost 6 points yesterday dipped down more than 13 points Tuesday to slip below the 3300 levels after achieving a 15-month closing high of 3310.2 on Friday. At the closing hours, the benchmark NZX-50 index ended down 13.46 points or 0.41% to 3290.29. The NZX 15 lost 23.37 points or 0.39% to close at 5985.54.

In Singapore, the share market tumbled on Tuesday with benchmark Strait Times widened their losses in afternoon trading on profit booking in banks and properties and blue-chip stocks as reduce risk appetite on cautious ahead of a stream of corporate earnings. Weak European stocks and lower US index futures also dented sentiment. At the closing bell, the blue chip Straits Times Index was at 2,916.11, dropped 17.42 points or 0.59%.

In Taiwan, stock markets tanked on Tuesday as investors booked profits in tech heavyweights, including Taiwan Semiconductor Manufacturing Company and Chi Mei Optoelectronics Corporation, following their recent gains. The benchmark Taiex share index snapped its series of recent gain, by finishing the day lower by 14.45points or 0.17% at 8309.37.

In Philippines, stock closed slightly up investors still chose to exercise caution. The PSEi closed in positive territory following positive news on the economic front. Export growth rose for the first time in 14 months, indicating that demand is slowly recovering after the global downturn. However, NG's budget deficit and the rising pressure on the domestic inflation continued to be a source of concern for the market players, which limited the gains registered by the composite index. As of November of 2009, the deficit was at P272.5 billion, already way above the P250 billion cap set last year and expected to reach P290 billion by December. The benchmark index PSEi ascended 0.59% or 18.27 points to 3,105.62, while the All Shares index augmented 0.21% or 4.17 points to 1,949.12.

In India, the key benchmark indices edged lower in choppy trade as robust industrial production data for November 2009 stoked worries that the central bank will tighten monetary policy to temper inflationary expectations. Weak European stocks and lower US index futures also dented sentiment. IT stocks bucked the weak trend after strong Q3 December 2009 results from IT bellwether Infosys Technologies.

The BSE 30-share Sensex was down 104.20 points or 0.59% at 17,422.51. The S&P CNX Nifty was down 39 points or 0.74% at 5210.40.

On the economic front, latest government data showed industrial output surged in November 2009. Industrial output rose at a faster-than-expected 11.7% in November 2009 from a year earlier, helped by stimulus measures that boosted domestic demand, data showed on Tuesday. The growth was the fastest since October 2007, when the industry grew an annual 12.2%.

Manufacturing production rose 12.7% in November 2009 from a rise of 2.7% a year earlier. The final figure for October's annual industrial growth rate was unchanged at 10.3%. Industrial output rose 2.6% in the 2008/09 fiscal year (April-March), slower than 8.5% in 2007/08 as the global economic downturn hit Asia's third-largest economy.

In other regional market, European shares edged lower, as losses in the auto and oil sectors and a less-than-impressive start to the U.S. earnings season offset results from British supermarket giant Tesco and German retailer Metro. On a regional level in Europe, the U.K. FTSE 100 index traded down 0.4% at 5,515, the German DAX index declined 0.7% to 6,001 and the French CAC-40 index lost 0.5% to 4,024.

The market declined on Tuesday, shrugging off better-than-expected industrial production data for November 2009. Investors chucked shares due to fears that a robust industrial production data and a recent surge in inflation will provoke India's central bank to tighten monetary policy.

Weak European stocks and lower US index futures also dented sentiment. IT stocks bucked the weak trend after strong Q3 December 2009 results from IT bellwether Infosys Technologies.

The BSE 30-share Sensex fell 104.20 points or 0.59%, off close to 189.49 points from the day's high. FMCG, banking, realty and metal stocks fell. The market breadth was weak in contrast to a strong breadth earlier in the day

The market was volatile. It turned negative after a firm opening triggered by better-than-expected Q3 December 2009 results by IT bellwether Infosys which were announced just before trading started. It recovered from the day's low in morning trade after some Asian stocks reversed early losses. The market pared gains after hitting fresh intraday day high in early afternoon trade. The market slipped into the red in afternoon trade. The market extended losses later.

Trade minister Anand Sharma said on Tuesday the government will provide more incentives to exports of 2,000 products including those in engineering, electronics and chemicals. The country will target the Chinese and the Japanese markets for exports, he added.

A latest government data showed industrial output surged in November 2009. Industrial output rose at a faster-than-expected 11.7% in November 2009 from a year earlier, helped by stimulus measures that boosted domestic demand, data showed on Tuesday. The growth was the fastest since October 2007, when the industry grew an annual 12.2%.

Manufacturing production rose 12.7% in November 2009 from a rise of 2.7% a year earlier. The final figure for October's annual industrial growth rate was unchanged at 10.3%. Industrial output rose 2.6% in the 2008/09 fiscal year (April-March), slower than 8.5% in 2007/08 as the global economic downturn hit Asia's third-largest economy

Strong industrial production data along with an expected surge in the wholesale price inflation reinforced market expectations that the central bank will tighten monetary policy. The next policy review by the Reserve Bank of India is on 29 January 2010

The growth trend in the industrial output will continue in the coming months, Kaushik Basu, the chief economic adviser at the finance ministry, said on Tuesday.

Industrial output growth in the fiscal year to March 2010 will be higher than 2.6% recorded in 2008/09, Montek Singh Ahluwalia, the deputy chairman of Planning Commission said on Tuesday. He also said he hopes that the inflation would come down, without specifying any time frame.

The government will make all efforts to introduce the pension bill in the upcoming budget, R. Gopalan, secretary, financial services, in the finance ministry, said on Tuesday.

Meanwhile, the December 2009 export figures will be positive, trade minister Anand Sharma said on Monday. Sharma told a banking summit that higher December 2009 exports are due to a low base. The exports rose an annual 18.2 % in November 2009 to $13.2 billion, the first rise after 13 months of annual decline. Sharma also said that the government would spend $1.5 trillion on infrastructure over the next 10 years. Food prices are likely to come down due to good winter crop prospects and there was no need to import wheat and rice, Sharma said on Monday.

European shares turned negative after a firm start on Tuesday. The key benchmark indices in France, Germany and UK fell by between 0.08% to 0.67%.

Asian stocks were mixed. The key benchmark indices in China, Jakarta, Japan, and South Korea were up by 0.27% to 1.91%. However, indices in Hong Kong, Singapore and Taiwan fell by 0.17% to 0.38%.

China's central bank on Tuesday sold one-year bills at a higher yield for the first time since August 2009, fanning concern the government is moving to tighten liquidity. The People's Bank of China on Tuesday raised the auction yield on one-year bills by a bigger-than-expected 8.29 basis points and drained a record 200 billion yuan ($29 billion) from the market, signalling a bias to tighten monetary conditions. Last week, the bank had surprised markets by raising the interest rate on three-month bills for the first time since August 2009, raising fears of a tightening cycle to head off economic overheating.

Trading in US index futures indicated Dow could fall 46 points at the opening bell on Tuesday, 12 January 2010.

After Wall Street's close Monday, US aluminium maker Alcoa Inc posted earnings, excluding charges, of one cent per share for the fourth quarter, compared with expectations for five cents. Alcoa shares lost 5.3% in after-hours trade.

In regular trading on Monday, the Dow and the S&P 500 closed at fresh 15-month highs as shares of big manufacturers advanced on strong Chinese economic data. The Nasdaq fell as tech shares succumbed to profit-taking. The Dow was up 45.80 points, or 0.4%, to 10,663.99. The S&P 500 index added 2 points, or 0.2%, to 1,146.98, while the Nasdaq was down 4.76 points, or 0.2%, to 2,312.41.

Closer home, the BSE 30-share Sensex fell 104.20 points or 0.59% at 17,422.51. The barometer index lost 134.16 points at the day's low of 17,392.55 in late trade. The Sensex jumped 85.29 points at the day's high of 17,612 in early afternoon trade.

The market breadth, indicating the overall health of the market was weak. On BSE, 1077 shares advanced as compared with 1850 that declined. A total of 64 shares remained unchanged. The breadth was strong earlier in the day.

Index heavyweight Reliance Industries (RIL) inched up 0.20%. The stock had lost 1.85% on Monday after the firm raised $763 million through a block sale of 3.3 crore shares. RIL raised $763 million through a block sale of 3.3 crore shares on Monday, the country head of UBS Manisha Girotra said on Monday. Girotra also said the share sale at Rs 1050 each would be the last of block trades by the company for a while. UBS was the sole arranger for the trade.

Reliance, which is bidding for bankrupt LyondellBasell Industries, had previously sold treasury shares to state-owned insurer Life Insurance Corp of India raising $577 million last week. As per reports last week, Reliance had sweetened its offer to buy a controlling stake that valued LyondellBasell at $13.5 billion.

IT bellwether Infosys rose 3.97%. Infosys raised its full-year revenue and profit outlook after strong Q3 results and on improving trend for outsourcing orders. The company's consolidated net profit as per Indian accounting standards rose 2.72% to Rs 1582 crore on 2.8% rise in consolidated revenue to Rs 5741 crore in Q3 December 2009 over Q2 September 2009.

Infosys has raised earnings and revenue guidance for the year ending March 2010 (FY 2010) both in rupee and dollar terms. Infosys has forecast a 1.8% to 2% growth in consolidated dollar revenue for FY 2010 compared from a drop it had projected at the time of announcing Q2 September 2009 results. Infosys said FY 2010 consolidated revenue in dollar terms could rise to $4.75 billion to $4.76 billion, from $4.6 billion to $4.62 billion forecast earlier. The consolidated earnings per American depository share for the full year is seen rising 0.4% to $2.26, the company said in a statement.

Infosys CEO and managing director S. Gopalakrishnan said the global economic recovery seems to be led by the US and the financial services segment. Though IT budgets are expected to be flat in 2010, offshore outsourcing is expected to benefit from this recovery, he added. Chief Operating Officer S.D. Shibulal said the contribution to revenues from top ten clients grew by 12.2% during the quarter adding that Infosys' clients are taking decisions much faster.

Tata Steel, the world's eighth-largest steelmaker fell 3.42%, falling for the straight second day. The company said on 5 January 2010 sales from its Indian operations rose 73% in December 2009 to 636,000 tonnes from a year earlier. The Indian operations account for about a quarter of the group's total annual global capacity of 30 million tonnes, which includes unit Corus, Europe's second-largest steelmaker.

Telecom stocks fell after telecom minister A Raja today said the government is yet to finalise the schedule for third-generation wireless spectrum auction. The auction, scheduled to begin from 14 January 2010, looks set to be delayed as the government has not issued notice inviting applications as yet. "Some of the issues between defence and the Department of Telecommunications have not been resolved. Either the (ministerial panel) chairman will decide or another round of consultation may be held," Raja said.

Bharti Airtel, India's top mobile operator by sales fell 2.07% after the company said on Tuesday it would invest $1 billion in Bangladesh's Warid Telecom, in which it would have board and management control. India's second largest mobile operator by sales Reliance Communications fell 3.49%.

Realty stocks had surged over the past two days after a foreign brokerage house raised its outlook on the realty sector citing a potential recovery in the office property market and a steady growth in key residential markets.

Ansal Properties & Infrastructure lost 1.83%, after the company said promoters have pledged additional 23.68 lakh shares representing 1.92% of the equity capital of the company

In US markets, Dow Jones touched 15 months high to closed at 10664, 46 points higher. However, on other hand Nasdaq fell marginally by 0.21% to closed at 2312.

Among the Asian indices, all the Asian indices are trading negative in morning trade. At the time of writing of this report, SGX Nifty is trading 24 points lower.

Indian markets

The domestic indices are expected to open lower, remain volatile, owing to negative global markets.

Among the local indices, the Nifty could test the 5300-5325 range on the up side, while on the down side it could find support at 5225 and 5200. While the Sensex is likely to get support at 17300 and may face resistance at 17800.

Indian ADR's

Among the Indian ADRs trading on the US bourses, MTNL leads the chart of gainers with gain of 5.08%. On other hand HDFC Bank was the worst performer with loss of 1.52%.

Commodity cues

In the commodity space, wherein the Crude oil prices recorded gain, with the Nymex light crude oil for February series rose by $0.30 to settle at $83.05 a barrel.

In the metals space, Comex Gold for February series rise by $12.80 to settle at $1151.70 to a troy ounce.

In the metals space, Comex Silver for March series rise by $0.23 to settle at $18.70 to a troy ounce.

Daily trend of FII/MF investment in equities

On January 11, 2010, FIIs were the net buyers of the Indian Stocks in the tune of Rs150.80 crore (with the gross purchase of Rs3268.30 crore and gross sales of Rs3117.60 crore).

While the Domestic mutual funds, on January 08, 2010, were the net sellers of the stocks in the tune of Rs157.70 crore (with gross purchase of Rs948.40 crore and gross sales of Rs1106.10 crore).

At USA, copper futures for March delivery ended higher by 4.05 cents (1.2%) to 3.441 a pound. It was the largest gain by red metal in three days. Last week, copper ended higher by 1.6%. This year, till date, copper is higher by 2.8%. Copper ended FY 2009 higher by 140%.

At LME, copper for delivery in three months ended higher by $106.5 (1.4%) at $7,567.5. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The dollar index had dropped almost 4.2% last year. The metal was also pushed higher by record first-half imports to China, the world's largest user.

In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.8%. It fell to a three-week low against the euro today.

Yesterday, Chinese government report showed that exports climbed for the first time in 14 months and imports reached record highs. China's imports surged 55.9% in December, while exports rose 17.7% from the same period a year ago. The reports showed that shipments of copper and copper products into China rose to about 369,400 metric tons in December 2009. That was up 27% from November and 29% from a year earlier.

In addition, China's Finance Minister pledged to spend the full amount of planned stimulus in 2010, despite improvements in its economy and efforts to control bank lending.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.

As per latest data, inventories of copper in warehouses monitored by the LME rose for a 47th day to 515,200 tons.

In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

At the MCX, copper for February delivery closed higher by Rs 0.45 (0.13%) at Rs 345.25/Kg. Prices rose to a high of Rs 350/Kg and fell to a low of Rs 344.7/Kg during the day's trading.

Among other metals traded in the LME on Monday, lead gained 2.8% to end at $2,604 a ton and zinc gained 3.6% to end at $2,612 a ton. Nickel gained 3.1% to end at $18,450. Aluminium gained 2.2% to end at $2,333 a ton.

IT bellwether Infosys's Q3 December 2009 result will set the tone for the market. However, weak Asian stocks may dent sentiment. The government will announce industrial output data for the month of November 2009 today, 12 January 2010. Industrial production recorded a robust 10.3% growth in October 2009.

Infosys will annunce Q3 December 2009 results today, 12 January 2010. Analysts expect weak performance from Infosys in Q3 December 2009 due to a firm rupee and hike in employee salaries. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports. Nevertheless, a favourable cross-currency movement will to some extent offset the impact of firm rupee and hike in salary bill. A number of analysts expect Infosys to revise upwards its guidance for the year ending March 2010 amid an improved global business environment. However, a section of the market feels that an adverse cross-currency movement will mean a muted guidance from Infosys for Q4 March 2010.

A total of seven brokerages expect a between 0.79% to 8.65% fall in Infosys' Q3 consolidated net profit as per Indian accounting standards at between Rs 1406.80 crore to Rs 1527.70 crore in Q3 December 2009 over Q2 September 2009. They expect a between 1.29% fall to a rise of 0.37% in revenue at between Rs 5512.90 crore to Rs 5606.10 crore in Q3 December 2009 over Q2 September 2009. It may be recalled that Infosys had raised salaries in October 2009.

Bajaj Auto will also announce its Q3 December 2009 result today.

Meanwhile, the December 2009 export figures will be positive, trade minister Anand Sharma said on Monday. Sharma told a banking summit that higher December 2009 exports are due to a low base. The exports rose an annual 18.2 % in November 2009 to $13.2 billion, the first rise after 13 months of annual decline. Sharma also said that the government would spend $1.5 trillion on infrastructure over the next 10 years. Food prices are likely to come down due to good winter crop prospects and there was no need to import wheat and rice, Sharma said on Monday.

In US markets, the Dow and the S&P 500 closed at fresh 15-month highs as shares of big manufacturers advanced on strong Chinese economic data. The Nasdaq fell as tech shares succumbed to profit-taking. The Dow was up 45.80 points, or 0.4%, to 10,663.99. The S&P 500 index added 2 points, or 0.2%, to 1,146.98, while the Nasdaq was down 4.76 points, or 0.2%, to 2,312.41.

Earnings season kicked off with Alcoa reporting numbers after the bell. The aluminum giant reversed a loss from a year earlier, but still reported earnings that fell well short of Wall Street's estimates.

Closer home, the key benchmark indices ended flat as profit booking in frontline stocks eroded early gains on Monday, 11 January 2010. The BSE 30-share Sensex fell 13.58 points or 0.08% at 17,526.71 on that day.

We recommend buying the stock of Aries Agro from a short-term perspective. It is apparent from the charts that the stock has been on a steady longer-term uptrend since its March 2009 low of Rs 24.5, forming higher peaks and higher lows. It broke through various key resistances such as Rs 40, Rs 60 and Rs 80 level recently with good volumes. The stock is in an uptrend in all time frames, intermediate, medium and short-term. On January 11, it surged 5 per cent accompanied with good volume recoding a 52-week high of Rs 89.8. These gains have reinforced the stock's bullish momentum and it is trading way above the 21- and 50-day moving averages. Both the daily and weekly relative strength indices are featuring in the bullish zone. Besides, the daily as well as weekly moving average convergence and divergence indicators are hovering in positive territory. Our short-term outlook on the stock is bullish. We expect its current up move to prolong until it hits our short-term price target of Rs 99. Traders with short-term perspective can consider buying the stock with Rs 85 as stop-loss.

I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. -Peter Lynch.

The bulls will hope the earnings season gives them more reasons to hold on to quality companies and dump the inferior ones. Infosys and Bajaj Auto are the big companies declaring their results today. We expect Infosys to report 0.4% QoQ growth in revenues and 6.3% sequential decline in PAT. For Bajaj Auto, we expect 65% YoY jump in revenues and 189.6% YoY jump in PAT.

IIP data for November is due around noon today, and monthly inflation data is scheduled to be released on Thursday. Industrial output is seen rising by 10% in November from a year earlier after expanding by 10.3% in October. Marketmen will watch these crucial data points for cues on what action, if any, the RBI will take on Jan. 29.

The current phase of consolidation may extend for a few more days till there is further clarity on the health of the economy and India Inc. The NSE Nifty is likely to trade in a broad range of 5182 to 5310. Beware of the unusual spurt in some non-index stocks.

Indian markets had a fairly muted day of trade as bulls and bears both seemed to be on a wait and wait mode. With the results season underway, and key economic data scheduled for this week, traders and investors alike maintained their reluctance towards fresh buying. At the same time, small- and mid-cap stocks continued to hog the limelight and outperformed their frontline peers.

Realty and Telecom stocks were among the other notable gainers. The BSE Oil & Gas index ended in the red thanks to the treasury sale by the index heavyweight Reliance Industries. The stock single handedly dragged the Sensex down by 44 points with the stock itself losing 2%.

Other noteworthy gainers were Bharati Shipyard and ABG Shipyard which were up 20% each.

The BSE Sensex marginally lost 14 points to end at 17,526 after touching a high of 17,776 and a low of 17,500. The Nifty ended flat at 5,249.

Equity markets in Asia ended in the green. The Nikkei in Japan was shut, while Australia's S&P/ASX ended higher by 0.8%. The Shanghai SE Composite declined 0.2% and Hang Seng index in Hong Kong gained 0.6%.

In Europe, stocks were trading higher as well. The DAX in Germany was up 0.8% and the CAC 40 index in France was up 1%. The FTSE in the UK was up 1%.

Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, adding 2.5%, followed by the Teck index that was up 1% and the BSE Auto index was up 1%. The BSE Mid-Cap index advanced 0.9% while BSE Small-Cap index added 1.8%.

Among the 30-components of Sensex, 15 stocks ended in the negative terrain and 15 ended in the green. Reliance Industries, Wipro, BHEL, Hindalco and SBI were among the top losers.

On the other hand, DLF, Grasim, TCS, Hero Honda, Maruti and JP Associates were among the top gainers.

Outside the frontline indices, the big losers in the broader market were PTC, IFCI, Jain Irrigation and Videocon Industries. On the other hand, gainers included GE shipping, MTNL, Gujarat NRE Coke BEL and Madras Cement.

MBL Infrastructures which started trading at Rs190, a premium of Rs10 over the issue price of Rs180 per share on the BSE ended at Rs205 translating into a premium of 14% against its issue price.

MBL Infrastructure is an integrated infrastructure construction and project development and maintenance company, entered the capital market on November 27, 2009 targeting to raise about Rs1bn, offering 57,00,000 equity shares of Rs10 each at a price band of Rs165 - Rs180.

The IPO proceeds will be invested in capital equipments and used to meet working capital requirements.

Shares of Reliance Industries slipped 2% to end at Rs1081. The Petroleum Trust sold 33mn equity shares of the company realizing nearly Rs34.65bn at an average price of Rs1050 per share.

Reliance Industrial Investments and Holdings Ltd., a wholly owned subsidiary of RIL, is the beneficiary of the Trust.

NTPC Vidyut Vyapar Nigam, the power trading arm of NTPC plans to buy solar power at a rate set by the Central Electricity Regulatory Commission, Minister for New and Renewable Energy Farooq Abdullah said in New Delhi today.

The government plans to add ~20,000MW of solar power capacity in three phases by 2022. The stock gained 1% to end at Rs233, it opened at Rs231 it touched an intra-day high of Rs235 and a low of Rs232 and recorded volumes of over 0.77mn shares on BSE.

SAIL announced that sales of its value-added construction grade products rose 23 % to 417,000 metric tons in the nine months ended Dec. 31. Shares of SAIL gained 1.5% to end at Rs242. The scrip opened at Rs239 it touched an intra-day high of Rs245 and a low of Rs235 and recorded volumes of over 1.4mn shares on BSE.

The Chinese government dropped a rule stipulating that more than 70% of the wind turbines in use in China must be produced domestically, reports stated. The policy change will spur foreign investment in China’s wind-turbine industry.

Shares of Suzlon surged by over 2.5% to end at Rs94.75. The scrip opened at Rs93 it touched an intra-day high of Rs95.20 and a low of Rs92.7 and recorded volumes of over 8.3mn shares on BSE.

Without any major catalyst, US stocks lingered in a very narrow range near the unchanged mark for most part of the day on Monday, 11 January 2010. Stocks opened in higher ground amid strength in natural resource. A lack of news flow and other catalysts left stocks to spend most of the session oscillating between red and green.

At the end, Dow managed to eke out modest gains for itself and so did S&P 500. But tech heavy Nasdaq failed to inch up in the green.

At the end of the day on Monday, 11 January, 2010, the Dow Jones Industrial Average ended higher by 45.8 points at 10,663.99. Nasdaq ended lower by 4.76 points at 2312.42. S&P 500 ended higher by 2 points at 1146.98.

Five of ten economic sectors ended in the green led by industrial, utilities, and healthcare sectors. Technology and material sectors lagged. Financial and telecom sectors were almost unchanged.

Alcoa, Chevron and Caterpillar were the main Dow components that led Dow's rally. Chevron and Caterpillar witnessed upgrades at investment firms. Walt Disney remained a main Dow laggard.

Renewed pressure against large-cap tech took the tech sector to a loss. Tech was among the worst performers this session and was been particularly troublesome for the Nasdaq, which lagged the other headline indices for the entire session.

The material sector lent early support stemming from higher commodity prices. The weak dollar and strong trade data from China helped in higher commodity prices. But in the end, the material sector settled with a loss.

In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.8%. It fell to a three-week low against the euro today.

Yesterday, Chinese government report showed that exports climbed for the first time in 14 months and imports reached record highs. China's imports surged 55.9% in December, while exports rose 17.7% from the same period a year ago. The reports showed that shipments of copper and copper products into China rose to about 369,400 metric tons in December 2009. That was up 27% from November and 29% from a year earlier.

Crude oil prices pared all its early gains on Monday, 11 January 2010. Prices rose initially today due to the sinking dollar. Then traders focused on the fact that crude's recent gains were overdone as extreme cold temperature is expected to give way to some warmer temperature in the next few weeks.

On Monday, crude-oil futures for light sweet crude for February delivery closed at $82.53/barrel (lower by $0.22 or 0.3%). Earlier during the day, prices rose to a high of $84.05, a fifteen-month high figure. Crude ended last week higher by 4.3%. On a year to date basis until date, crude is higher by 4%.

Precious metal prices rose for third straight session on Monday, 11 January 2010. Prices rose as dollar slipped following reports in the market about Federal Reserve insisting to keep interest rates low currently in the US market. The same enhanced the appeal of precious metal as an alternate investment. Strong trade data from China also boosted prices.

On Monday, gold for February delivery ended at $1,151.4 an ounce, higher by $12.5 (1.1%) an ounce on the New York Mercantile Exchange. Year to date in FY 2010, gold has risen by almost 5%. On Monday, March Comex silver futures ended higher by 23 cents (1.2%) at $18.7 an ounce. Year to date in FY 2010, silver has risen by almost 10.8%.

After today's close, Alcoa kicked off the earnings session reporting its fourth quarter earnings which it missed. As per the company, "This was a tough year for the aluminum industry - a price crash, demand destruction, and credit crunch. Yet, today Alcoa is stronger than when the year started."

Indian ADRs ended mixed on Monday. MTNL and Dr Reddys were the main gainers soaring 5% and 2% respectively. WNS Technologies and HDFC Bank were the main losers shedding 2% and 1.5% respectively.

Earnings reports will start to pick up next week mainly. The economic report expected for tomorrow is the trade balance data.

Precious metal prices rose for third straight session on Monday, 11 January 2010. Prices rose as dollar slipped following reports in the market about Federal Reserve insisting to keep interest rates low currently in the US market. The same enhanced the appeal of precious metal as an alternate investment. Strong trade data from China also boosted prices.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Monday, gold for February delivery ended at $1,151.4 an ounce, higher by $12.5 (1.1%) an ounce on the New York Mercantile Exchange. Last week, it had ended higher 3.9%. Year to date in FY 2010, gold has risen by almost 5%.

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end.

On Monday, March Comex silver futures ended higher by 23 cents (1.2%) at $18.7 an ounce. Last week, silver ended higher by 9.6%. Year to date in FY 2010, silver has risen by almost 10.8%.

Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.

In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.8%. It fell to a three-week low against the euro today.

Yesterday, Chinese government report showed that exports climbed for the first time in 14 months and imports reached record highs. China's imports surged 55.9% in December, while exports rose 17.7% from the same period a year ago. In addition, China's Finance Minister pledged to spend the full amount of planned stimulus in 2010, despite improvements in its economy and efforts to control bank lending.

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.

At the MCX, gold prices for February delivery closed higher by Rs 131 (0.55%) at Rs 17,031 per ten grams. Prices rose to a high of Rs 17,104 per 10 grams and fell to a low of Rs 16,911 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 196 (0.69%) higher at Rs 28,434/Kg. Prices opened at Rs 28,280/kg and rose to a high of Rs 28,590/Kg during the day's trading.

Crude oil prices pared all its early gains on Monday, 11 January 2010. Prices rose initially today due to the sinking dollar. Then traders focused on the fact that crude's recent gains were overdone as extreme cold temperature is expected to give way to some warmer temperature in the next few weeks.

On Monday, crude-oil futures for light sweet crude for February delivery closed at $82.53/barrel (lower by $0.22 or 0.3%). Earlier during the day, prices rose to a high of $84.05, a fifteen-month high figure. Crude ended last week higher by 4.3%. On a year to date basis till date, crude is higher by 4%.

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 44% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.8%. It fell to a three-week low against the euro today.

Among other energy products on Monday, heating oil for February delivery fell 2 cents, or 0.8%, to $2.18 a gallon.

Also on Monday, natural gas for February sank 5.9%, or 34 cents, to $5.41 per million British thermal units.

At the MCX, crude oil for January delivery closed Rs 45 (1.2%) lower at Rs 3,744/barrel. Natural gas for January delivery closed lower by Rs 15.6 (5.9%) at Rs 246.7/mmbtu.